Reserves and Production - The company reported proved developed reserves of 5,757 MBbls of oil, 3,676 MBbls of NGLs, and 24,749 MMcf of gas for 2023, with total reserves increasing to 13,558 MBoe[52]. - The Gulf Coast region had 452 MBoe of proved reserves, representing 1.7% of total proved reserves as of December 31, 2024[60]. - As of December 31, 2024, the company had 359 producing wells in the Mid-Continent region, with an average net daily production of 806 Boe[63]. - In West Texas, the company had 543 wells, with an average net daily production of 13,749 Boe, representing 88.3% of total proved reserves[65]. - Average net daily production reached 14,707 Boe per day as of December 31, 2024, with 13,749 Boe per day coming from Texas[59]. Financial Performance - The company reported a net income of 9.1million,or5.40 per share, for the three months ended March 2025, compared to 11.3million,or6.27 per share, for the same period in 2024[71]. - Oil, gas, and NGLs sales increased by 21.02% to 47.2millionforthethreemonthsendedMarch2025,upfrom39.0 million in the same period of 2024[72]. - Production and ad valorem taxes increased by 10.77% to 3.3millionforthefirstquarterof2025,reflectinghighergasandnaturalgasliquidrevenues[74].−Depreciation,depletion,andamortizationincreasedby97.320.4 million for the first quarter of 2025, due to increased production from new wells[76]. Capital Expenditures and Investments - The company invested 113millionin48horizontalwellsinWestTexasin2024,withplanstoinvest118 million in 38 horizontal wells in 2025[82]. - The company anticipates investing over 100millioninfuturedrillingactivitiestargetingtheWolfcamp"D"payzoneinReaganCounty[70].−Thecompanyhasidentified25horizontallocationsacrossitsacreageinUptonandMartincountiesthatcouldbedrilledinthenearterm,requiringaninvestmentofapproximately76 million[70]. - The Company aims to maintain a strong balance sheet and ample liquidity, with a capital budget reflective of commodity prices and expected cash flows for 2025[81]. Debt and Credit Facilities - The Company has a reserves-based line of credit totaling 300million,withacurrentborrowingbaseof115 million[86]. - As of May 14, 2025, the Company's outstanding borrowings under this line are 24.0million[86].−ThenextborrowingbasereviewisscheduledforJune2025,andthebankreviewstheborrowingbasesemi−annually[86].−TheCompanyiscurrentlyincompliancewithfinancialandoperationalcovenantsandexpectstoremaincompliantoverthenexttwelvemonths[86].−TheCompany’soilandgaspropertiesarepledgedascollateralforthelineofcredit[86].MarketConditionsandFutureOutlook−Naturalgaspricesaveraged2.13 per MMBtu in 2024, down from 2.64perMMBtuin2023and6.36 per MMBtu in 2022[57]. - Oil prices averaged 75.48perbarrelin2024,comparedto78.22 per barrel in 2023 and $93.67 per barrel in 2022[57]. - Future development plans are contingent on cash flow expectations and the availability of funds from the revolving credit facility[51]. - The ability to borrow under the revolving credit facility may be limited if there is a decrease in the borrowing base due to commodity price declines[86]. - Future drilling and development plans will be based on expected cash flows from operations and availability of funds[85]. - The Company may face a decrease in its borrowing base due to lower natural gas or oil prices, operational difficulties, or declines in reserves[86]. Strategic Initiatives - The company is actively pursuing acquisitions of producing properties to enhance its asset base and stockholder value[46]. - The company has no current derivative contracts and does not plan to enter into new contracts unless necessary for credit stability[48]. - The majority of the Company's capital spending is discretionary and will depend on the assessment of the oil and gas business environment[87]. - The Company is not required to enter into any hedge agreements as the borrowing base utilization percentage is less than 15%[85].
PrimeEnergy(PNRG)2025-05-19 20:14